By Adrienne Galeas— May 30, 2025

4 MIN READ

The second quarter of 2025 revealed some stress points in global supply chains, from April’s blackout across Spain and Portugal to sudden shifts in U.S. trade policy. The power outage disrupted production, logistics, and IT systems, highlighting the need for robust contingency planning.

Takeaways From Power Outage in Spain & Portugal

April’s blackout across Spain and Portugal served as a sharp reminder: even in regions which are considered stable, infrastructure disruptions can ripple across supply chains with little warning. Power losses led to immediate logistical delays, halted production schedules, and data system outages—highlighting the vulnerability of operations without contingency frameworks in place.

For supply chain leaders, the event reinforces the value of multi-layered risk management. Backup systems (Plan B and even Plan C) aren’t just checkboxes—they’re active tools that reduce downtime and protect revenue. Companies with diversified suppliers, alternate transport routes, and real-time visibility tools are better positioned to respond in real-time. It’s another case study in why resilience is not a buzzword but a competitive necessity.

Latest in US Tariff Uncertainty

The recent temporary easing of tariffs on certain Chinese imports triggered a scramble among U.S. businesses to fast-track shipments this week. Yet the gains will be uneven. Long lead times, limited cargo space, and port congestion mean not all importers will be able to take full advantage of the window.

For the supply chain sector, this moment exposes a deeper issue: policy volatility has become a hidden supply chain cost. When trade rules shift without warning, procurement, inventory planning, and freight contracts all suffer. Logistic efficiency benefits from predictability and stability. Until then, agility, optionality in sourcing, and deeper scenario planning will be the only viable approach to keep costs down and maintain high-quality service.

Key Actions for Supply Chain Leaders:

Audit contingency plans with real-world scenarios

Revisit supplier diversification strategies

Monitor regulatory developments weekly, not quarterly

Build flexibility into shipping schedules and inventory buffers

These events underscore that resilience, optionality, and real-time responsiveness are no longer optional, they’re essential for maintaining stability amid growing unpredictability.

Sources:

The Associated Press
All-Ways
Freightwaves

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